Fund of Information

Finding Strength in Numbers

Multi-manager funds, which typically focus on a single asset class, can reduce risk and add return to your portfolio.

One of the biggest knocks against active mutual funds is that too much is riding on the decisions of a single manager or like-minded investment team. Even with perfect checks and balances, funds tend to fluctuate as their investment styles move in and out of favor.

As a remedy, active investors are told to diversify their portfolios, not just across different asset classes but, ideally, different fund...